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In experimental games, we observe the following phenomena: (1) many subjects cooperate contrary to their material interest, (2) they cooperate in a reciprocal manner, (3) subjects often punish those others who behave unkindly, and (4) previous history usually influences subjects’ choices. We propose a simple game-theoretical model to account for these and other experimental phenomena, and compa...
We introduce social capital accumulation into a neoclassical model, showing how it differs from physical and human capital accumulation. We take the view that social capital is crucial to the enjoyment of socially provided goods and that it is mainly accumulated by means of participation to social activities. Under-investment in social capital may lead a growing economy to fall into a social po...
We examine a variety of stability and equilibrium de nitions that have been used to study the formation of social networks among a group of players. In particular we compare variations on three types of de nitions: those based on a pairwise stability notion, those based on the Nash equilibria of a link formation game, and those based on equilibria of a link formation game where transfers are po...
We study a model of electoral competition where voters obtain information on candidates’ platforms through campaign advertising, and word-of-mouth communication. We show that when the costs of campaign advertising are low, an increase in word-of-mouth communication among voters causes polarization. In particular, the more voters can exchange political information between each other, the more of...
Most research in economics models agents somehow motivated by outcomes. Here, we model agents motivated by procedures instead, where procedures are defined independently of an outcome. To that end, we design procedures which yield the same expected outcomes or carry the same information on other’s intentions while they have different outcomeinvariant properties. Agents are experimentally confir...
We explore the scientific potential of virtual worlds for experimental economists. In particular, we report the results of a series of virtual world experiments designed to examine the suitability of (a) users as subjects and (b) the computer interface as an experimental platform. Formal results and informal observations from the sessions are discussed in terms of the methodological opportuniti...
The connection between obtaining higher paying jobs and undertaking some seemingly irrelevant activity is interpreted as “social culture.” In the context of a society trying to adopt a new technology, I show that by allowing the firms to give preferential treatment to workers based on some “cultural activity,” the society can partially overcome an informational free-riding problem. Therefore, s...
Bertrand, Kamenica, and Pan (2015) document that in the United States there is a discontinuity to right of 0.5 distribution households according female share total earnings, which they attribute existence gender identity norm. We provide an alternative explanation for this discontinuity. Using linked employer-employee data from Finland, we show emerges as result equalization convergence earning...
Most research in economics studies agents somehow motivated by outcomes. Here, we study agents motivated by procedures instead, where procedures are defined independently of an outcome. To that end, we design procedures which yield the same expected outcomes or carry the same information on others’ intentions while they have different outcomeinvariant properties. Agents are experimentally confi...
in this paper, i investigated the determinants of financial development with emphasis on social capital. first, i explain the relationship between financial development and its determinants, then estimate the model with gregory–hansen (1996) and johansen-juselious cointegration techniques in i.r. of iran (1971-2006). the results showed that, inflation and decline in social capital and weak prop...
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